The Indian equity markets have made a weak start tracking negative cues from global indices. The US markets closed lower on Friday on getting weak employment data, while, all the Asian peers, which opened today were trading in the negative terrain at this point of time, indicating somber investors' sentiments. Back home, selling pressure witnessed in most of the key heavyweights along with broader indices. The NSE's Sensex was trading below its crucial 5,500 mark. On the sectoral front consumer durables healthcare remained the only gainers while, realty, power and auto remained the top losers on the BSE sectoral space. The broader indices too were trading in the red. Meanwhile, PSU oil marketing companies (OMCs) viz., BPCL, HPCL and IOC were trading with a cut in the range of 0.50-1.50 percent as the EGoM meeting on gas allocation and pricing scheduled for June 9 has been called off. The market breadth on the BSE turned negative; there were 669 shares on the gaining side against 798 shares on the losing side while 56 shares remained unchanged.
The BSE Sensex opened at 18,344.27; about 32 points lower compared to its previous closing of 18,376.48, and has touched a high and a low of 18,371.28 and 18,291.96 respectively.
The index is currently trading at 18,314.09, down by 62.39 points or 0.34%. There were just 4 stocks advancing against 26 declines on the index.
The overall market breadth has made a negative start with 43.93% stocks advancing against 52.40% declines. The broader indices too were trading in the red; the BSE Mid cap and Small cap indices were down by 0.51% and 0.20% respectively.
The only gaining sectoral indices on the BSE were, CD up by 0.17% and HC was up by 0.14%. While, Realty down by 0.80%, Power down by 0.72%, Auto down by 0.69%, Metal down by 0.61% and Bankex down by 0.57% were the top losers on the index.
The top gainers on the Sensex were HDFC up by 1.17%, Cipla up by 0.54%, HDFC Bank up by 0.53% and Reliance Industries was up by 0.13%.
On the flip side, Jaiprakash Associates down by 2.06%, Maruti Suzuki down by 1.53%, DLF down by 1.41%, RCom down by 1.18% and Wipro down by 1.03% were the top losers on the index.
Meanwhile, as per the plan given by the Reserve Bank of India (RBI), around 350,000 villages across India would secure access to financial services offered by banks in the next two financial years. RBI has asked banks to ensure that 223,473 villages have access to basic financial services by March 2012. During 2010-11, banks have covered about 29,000 villages. The remaining villages are to be covered during 2011-12.
According to RBI, the number of 'no frills' accounts rose to 74 million from 50 million in a year in March, while the growth in no frills accounts with overdraft facilities has been slow. A 'no frills' account is one for which no minimum balance is insisted upon, and for which there are no charges levied if the balance is lower than the minimum balance permitted. K C Chakrabarty, deputy governor, RBI, stated that opening of no frills accounts was not enough to bring about financial inclusion. He said banks needed to strike a balance between opening branches and appointing business correspondents.
He also stated that all services cannot be covered only through banking correspondents. 'We need to have brick-and-mortar branches, and for which RBI had, in its annual policy, mandated banks to allocate at least 25 percent of the total number of branches to be opened in a year to unbanked, rural centres'. In March, 99,840 villages were covered by banks, of which, 76,801 were covered through business correspondents.
The lack of awareness and resultant anxiety amongst the communities is a major bottleneck and necessitates extensive mobilization and awareness campaigning (both planned and ad-hoc) to counterbalance these on-ground challenges. For which the Banks have been asked to include their financial inclusion performance when they evaluate the performances of their field staff.
One of the challenges in the financial sector that India faces today is the limited reach of financial services among the poor and vulnerable sections of the society. Financial inclusion is a key determinant of sustainable and inclusive growth, which in turn is essential for building an equitable society. Financial inclusion is important as it provides an avenue to the poor to bring their savings into the organized financial system. It gives them an avenue to remit money to their families in villages, besides weaning them away from the clutches of the exploitative money lenders. It is essential to extend banking services to the rural hinterland at the earliest, so as to integrate those regions with the growing India.
The S&P CNX Nifty opened at 5,504.30; about 14 points lower compared to its previous closing of 5,516.75, and has touched a high and a low of 5,515.60 and 5,490.05 respectively.
The index is currently trading at 5,495.15, down by 21.60 points or 0.39%. There were 8 stocks advancing against 42 declines on the index.
The top gainers of the Nifty were Sun Pharma up by 1.54%, Ranbaxy up by 1.42%, HDFC up by 1.13%, Cipla up by 0.52% and IDFC up by 0.26%.
JP Associates down by 2.07%, Ambuja Cement down by 2.03%, Maruti Suzuki down by 1.57%, DLF by 1.56% and Bajaj Auto was down by 1.24%, were the major losers on the index.
All the Asian equity markets were trading in the red; Jakarta Composite was down 12.60 points or 0.33% to 3,831.42, KLSE Composite was down 4.40 points or 0.28% to 1,555.45, Nikkei 225 was down 60.95 points or 0.64% to 9,431.26 and Straits Times was down by 15.45 points or 0.49% to 3,130.22.
The BSE Sensex opened at 18,344.27; about 32 points lower compared to its previous closing of 18,376.48, and has touched a high and a low of 18,371.28 and 18,291.96 respectively.
The index is currently trading at 18,314.09, down by 62.39 points or 0.34%. There were just 4 stocks advancing against 26 declines on the index.
The overall market breadth has made a negative start with 43.93% stocks advancing against 52.40% declines. The broader indices too were trading in the red; the BSE Mid cap and Small cap indices were down by 0.51% and 0.20% respectively.
The only gaining sectoral indices on the BSE were, CD up by 0.17% and HC was up by 0.14%. While, Realty down by 0.80%, Power down by 0.72%, Auto down by 0.69%, Metal down by 0.61% and Bankex down by 0.57% were the top losers on the index.
The top gainers on the Sensex were HDFC up by 1.17%, Cipla up by 0.54%, HDFC Bank up by 0.53% and Reliance Industries was up by 0.13%.
On the flip side, Jaiprakash Associates down by 2.06%, Maruti Suzuki down by 1.53%, DLF down by 1.41%, RCom down by 1.18% and Wipro down by 1.03% were the top losers on the index.
Meanwhile, as per the plan given by the Reserve Bank of India (RBI), around 350,000 villages across India would secure access to financial services offered by banks in the next two financial years. RBI has asked banks to ensure that 223,473 villages have access to basic financial services by March 2012. During 2010-11, banks have covered about 29,000 villages. The remaining villages are to be covered during 2011-12.
According to RBI, the number of 'no frills' accounts rose to 74 million from 50 million in a year in March, while the growth in no frills accounts with overdraft facilities has been slow. A 'no frills' account is one for which no minimum balance is insisted upon, and for which there are no charges levied if the balance is lower than the minimum balance permitted. K C Chakrabarty, deputy governor, RBI, stated that opening of no frills accounts was not enough to bring about financial inclusion. He said banks needed to strike a balance between opening branches and appointing business correspondents.
He also stated that all services cannot be covered only through banking correspondents. 'We need to have brick-and-mortar branches, and for which RBI had, in its annual policy, mandated banks to allocate at least 25 percent of the total number of branches to be opened in a year to unbanked, rural centres'. In March, 99,840 villages were covered by banks, of which, 76,801 were covered through business correspondents.
The lack of awareness and resultant anxiety amongst the communities is a major bottleneck and necessitates extensive mobilization and awareness campaigning (both planned and ad-hoc) to counterbalance these on-ground challenges. For which the Banks have been asked to include their financial inclusion performance when they evaluate the performances of their field staff.
One of the challenges in the financial sector that India faces today is the limited reach of financial services among the poor and vulnerable sections of the society. Financial inclusion is a key determinant of sustainable and inclusive growth, which in turn is essential for building an equitable society. Financial inclusion is important as it provides an avenue to the poor to bring their savings into the organized financial system. It gives them an avenue to remit money to their families in villages, besides weaning them away from the clutches of the exploitative money lenders. It is essential to extend banking services to the rural hinterland at the earliest, so as to integrate those regions with the growing India.
The S&P CNX Nifty opened at 5,504.30; about 14 points lower compared to its previous closing of 5,516.75, and has touched a high and a low of 5,515.60 and 5,490.05 respectively.
The index is currently trading at 5,495.15, down by 21.60 points or 0.39%. There were 8 stocks advancing against 42 declines on the index.
The top gainers of the Nifty were Sun Pharma up by 1.54%, Ranbaxy up by 1.42%, HDFC up by 1.13%, Cipla up by 0.52% and IDFC up by 0.26%.
JP Associates down by 2.07%, Ambuja Cement down by 2.03%, Maruti Suzuki down by 1.57%, DLF by 1.56% and Bajaj Auto was down by 1.24%, were the major losers on the index.
All the Asian equity markets were trading in the red; Jakarta Composite was down 12.60 points or 0.33% to 3,831.42, KLSE Composite was down 4.40 points or 0.28% to 1,555.45, Nikkei 225 was down 60.95 points or 0.64% to 9,431.26 and Straits Times was down by 15.45 points or 0.49% to 3,130.22.
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